In this week’s installment of the Agiloft Webinar Series, corporate law consultant Ellen Nendorf, JD, discussed the key artificial intelligence capabilities for legal teams. As legal professionals, these AI capabilities are the most impactful to daily tasks and reducing the tedium of contract review:
1. Access to information
This refers to AI aiding in obtaining totals and reports on contract, document, and other CLM system data. With the right integrations, this can be done with Alexa and other voice assistants. In legal, an example could be: “Hey Alexa, what contracts are up for renewal in the next fiscal quarter?” Then Alex reports the answer to the user and they quickly fire off an email response without having to manually count physical documents or even take the time to set up and run a report in an existing contract management system. Read more about using Alexa in CLM here.
2. Data extraction
Data extraction is perhaps the most tedious of all tasks in the legal or contracts department. Entering contract metadata and information into a central repository or spreadsheets is well withing the grasp of artificial intelligence, and it is a task many professionals probably do not mind delegating to machines. With intelligent metadata extraction using AI, users can upload one document or hundreds and the trained AI creates records for all contracts including dates, company information, and even attachments. While not an attractive feature on the surface, this can yield massive savings in time and money and give legal departments hours that can be served doing high-level tasks.
3. Risk scoring
This means using AI to automatically assign a risk score to contracts and individual clauses. With this AI, the extracted clauses can be compared to the company’s clause library to analyze the risk the contract poses to the organization. One example, perhaps you have 5 contracts in queue, 4 of which have a low risk score. With a quick look, you can knock out the four low risk contracts first, and keep business moving, and then focus in on the more complex contract. You didn’t have to open each contract, read through it, and then assess how much attention each needed before deciding how to focus your time.
Watch the full webinar below, including a definition of AI as well as an honest discussion on the state of AI today.